Funds News

Prosecutors, SEC charge ex-KPMG partner in insider trading scheme

April 11 (Reuters) - U.S. prosecutors in California filed criminal charges against Scott London, a former senior auditor at KPMG in Los Angeles, of conspiracy to commit securities fraud for passing nonpublic information about three companies to a friend who traded on it.

The U.S. Securities and Exchange Commission filed a corresponding civil complaint against London. According to the criminal complaint, London used his position as auditor for KPMG clients Skechers USA Inc, Herbalife Ltd and Deckers Outdoor Corp to tip his friend Bryan Shaw.

“The public has every right to fully expect a level playing field in our financial markets,” said U.S. Attorney André Birotte Jr.

“As alleged in the complaint, Mr. London chose to betray the trust placed in him as a financial auditor and to tip the trading scales for the benefit of insiders like himself.”

Shaw made over $1 million on the trades and gave London cash and jewelry in return, the complaint said.